The Dollar has depreciated against a basket of major currencies following news that the United States added another 157,000 jobs to its economy during July.
Although the headline NFP disappointed by printing below the 193,000 market expectations, the unemployment rate fell from 4% to 3.9% while wage growth increased by 0.3% in July month-on-month. When factoring in how June’s NFP was revised up to 248,000 from 213,000 and May’s report also revised higher to show 268,000 jobs created, the Dollar's losses are likely to be limited.
Today’s mixed jobs report is unlikely to derail the Federal Reserve from raising interest rates in September and this can already be reflected in the Dollar’s price action. In regards to the technical picture, a weekly close above 95.00 could open a path towards 95.50 and 96.10, respectively.
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